KIUC Seeks Approval to Purchase Headquarters Property

Kauaʻi Island Utility Cooperative (KIUC) is seeking approval from the Hawaiʻi Public Utilities Commission (PUC) to purchase the Hāna Kukui property on Paheʻe Street in Līhuʻe.  The cooperative has rented this property for its headquarters for well over 20 years. 

KIUC estimates that the $11.8 million purchase price will provide significant savings on a long-term basis as compared to continuing to rent the property.

“After evaluating all available options, we determined that purchasing Hāna Kukui is the best financial decision for the cooperative and our members,” said KIUC President and Chief Executive Officer David Bissell. 

KIUC’s evaluation considered extending the lease beyond its current term, relocating KIUC’s headquarters and even building a new headquarters.  Factors considered included the limited availability of suitable office space and parking that could suit KIUC’s headquarter needs, the costs to relocate or construct a new headquarters suitable to KIUC, and the time and disruption associated with relocating the cooperative’s headquarters. 

“After considering these options, purchasing the existing property allows us to secure the long-term use of our headquarters while avoiding future rent increases and relocation costs, and will provide the greatest long-term value to KIUC and its membership” Bissell added. 

Upon receiving PUC approval and completing the transaction, KIUC would own both the Hāna Kukui Center improvements and the underlying land in fee simple.

The $11.8 million purchase would be funded with proceeds from KIUC’s existing loan with the U.S. Department of Agriculture Rural Utilities Service.

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